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EDC Minutes 2007 08-21-07 Page 1 of 4 .APPROVED 10/16/07 UNITED CITY OF YORKVILLE ECONOMIC DEVELOPMENT COMMITTEE Tuesday, August 21, 2007, 7pm Conference Room In Attendance: Committee Members Alderman Jason Leslie, Chairman Alderman Joe Besco Alderman Gary Golinski Alderman Marty Munns Guests: I Mayor Valerie Burd (arr. 7:30pm) Alderman Joe Plocher i Alderwoman Rose Spears Community Development Director Travis Miller Interim City Manager Bart Olson Economic Development Director Lynn Dubajic Attorney Gregg Ingemunson Tony Scott, Kendall County Record Donna & Gary Cervelli, Tuscany Real Estate Investments Diane Pobol Ken Spaeth, Old 2 na Bank The meeting was called to order at 7:01pm by Chairman Jason Leslie. MINUTES FOR CORRECTION /APPROVAL:, July 31, 2007 The minutes were approved as read. I NEW BUSINESS: 1. EDC 2007 -32 Monthly Building Permit Report for July 2007 Travis Miller reported that residential permits are down, however, he noted 38 permits were issued in July, 2006 compared to 34 in July, 2007. Due to rapid commercial growth, the City is only down 10% for all permits compared to last year. Alderman Leslie asked how this has affected the budget so far this year. The capital fees tied to building permits are only slightly behind and there has been no effect on major capital purchases at this time according to Bart Olson. He also noted additional squad cars will be purchased when there is more cash available. He said there is great cooperation between departments regarding large dollar purchases. No further action was required and this information will move to C.O.W. Page 2 of 4 2. EDC 2007 -33 Monthly Plan Commission Report for August 2007 The Jake Land Group was the only item in this report and Mr. Miller provided a summary of the Plan Commission meeting. Since the EDC had requested to be informed when the Plan Commission is not in favor of proposed developments, he brought the information forward to this committee. In this case, the commission approved annexation, but not the PUD or zoning. Mr. Miller said the case will move to Public Hearing on August 28 without revisions and he said this is typical. The next step is the annexation agreement and then the matter moves back to EDC with revisions. It was noted that when an application comes in, there is a draft annexation agreement attached. When that is presented at a Public Hearing, the staff has not yet reviewed it. Alderwoman Spears noted that previously during Public Hearings, the Council was i allowed to address the petitioner and state concerns. However, at the last Public Hearing held, she noted that the Council was advised that was not the time for comment- -that it was only a presentation. Bart Olson said the Council and Mayor would need to decide what procedure would be followed and he suggested the Mayor and Aldermen should discuss this matter. Ms. Spears asked to have this matter placed on a future C.O.W. agenda. 3. EDC 2007 -34 Bank Moratorium Discussion Alderman Spears had asked for this item to be on the agenda and - opening discussion was turned over to her. She felt that too many banks were being built, many of them on major corners on prime property. She said other communities have placed restrictions on the location of banks and suggested they could be situated behind other buildings on the major corners. Mr. Besco said that building is slowing down and while he is not in favor of a bank on every corner, he wondered if the banks could really be restricted, especially in view of the present economy. Presently, three new banks are under construction in Yorkville according to Lynn Dubajic. She said the IRS has reported $121 million of income is moved annually from DuPage to Kendall County. Alderman Leslie questioned how banks are taxed. They are taxed on the real estate, however, not on gross receipts - -no sales tax comes back in to the community from banks. However, as Ms. Dubajic pointed out, banks could argue that they reach out to the communities in many ways including donations to various groups. i Page 3 of 4 Old 2 nd Bank representative Ken Spaeth commented that a typical branch bank costs $24 million to build. Banks are attracted to rooftops and are naturally attracted to Yorkville. He also concurred that banks are great supporters of philanthropic causes. Alderwoman Spears asked City staff to ask banks for a list of their donations. Mr. Spaeth said that only publicly traded banks would be required to have that information available. Mr. Miller agreed that the lack of sales taxes from banks is a legitimate question. He said if a bank has edged out another business, it should be reviewed. Alderman Munns asked Miller to provide some research of any such situations. Ms. Dubajic told of only one situation where a bank was looking at a corner property, the deal did not work and she notified a restaurant of the corner opportunity. It was suggested that prime locations should be identified and then perhaps designated as special use. Some committee members agreed the moratorium idea does have merit. Another suggestion was to assess land cash from banks or extra municipal /impact building fees Chairman Leslie said the item should be brought back to EDC in a month and further feedback could be solicited for special use districts as well as tax assessment research. At the conclusion of the discussion, Ms. Spears said after reading all the documentation, she would not recommend moratoriums, but rather special use or location. OLD BUSINESS: 1. PC 2007 -24 Kalant Development -Rezoning This development is at the corner of Rt. 47 and Center St. and the petitioner has requested rezoning from R -2 to B -2. One of the concerns was that parking would possibly spill over into the park area especially on the weekend when events might be held. Alderman Leslie also noted that the business would be within 2 feet of the future right -of -way Comments from Mr. Miller included: This is a non - conforming structure and if a fire occurred, the property would have to go through the variance process. Language regarding right - in/right -out, signage, water connection/well abandonment will be added to the development agreement. Revisions will be submitted so that the matter can be considered at the August 28 Council meeting. A consensus of the group was reached. 2. PC 2007-15 Grande Reserve Unit 28 —Preliminary Plan Travis Miller noted that this item is continued until next month. He explained that once the preliminary plan is approved, the petitioner has 12 months to bring forth a plan. At this time, Pasquinelli Builders is not withdrawing their plan, however, they are not moving forward with it either. He said this request is similar to the Wal -Mart time extension. i Page 4 of 4 Mr. Miller was asked to communicate to the builder that they should either withdraw or move forward and should be given one month to make a decision. 3. EDC2007 -30 Tuscan Plaza — Redevelopment Agreement Amendment Developer Note Provision Gary and Donna Cervelli were present on behalf of this development. The Cervelli's had a meeting with their banker following the last EDC meeting At that time, the bank requested an amendment to the agreement to indicate the City commitment to the agreement. In May, the City Council agreed to rebate money for TIF- eligible items to the Cervelli's. Those rebates are based on the generation of revenues. Alderman Leslie said he had concerns about the City taking a third party role for the funding for the development, but more importantly the fact that there is a hole in the ground. He does not want the City to be responsible for financial liability. He noted that Kathleen Orr, TIF Attorney, will speak at the August 28 City Council meeting to explain the procedure to the Council. Ms. Orr also had said that this type of note to the bank is used about 50% of the time. The redevelopment agreement contains timelines for obtaining permits, having financing secured and a completion date. The City may modify those dates and the August 31 permit date will be postponed to the end of the year, however, the financing must be secured by the end of September. Alderman Leslie recommended moving forward with this matter after the Council hears the explanation from Attorney Orr. Mr. Golinski noted that he would not be at the August 28 meeting, but said that he approved this action as long as there was no liability to the City. ADDITIONAL BUSINESS: None I Having no further business, the meeting was adjourned at 7:55pm. Minutes respectfully submitted by Marlys Young, Minute Taker i z •'�� o ��� o United City of Yorkville 800 Game Farm Road 1836 Yorkville, Illinois 60560 Telephone: 630 -553 -4350 Fax: 630 -553 -7575 y �CE i PLEASE SIGN IN -- MEETING: ) C DATE: 1 - 7 NAME COMPANY PHONE NUMBER ell" -R rc"r P a1 ? , � ae G 1 ' (e4v e l,* - n i